TARGET DATES

Businesses set early deadline for old Sh1000 notes usage

Some businesses have set deadline to September, 26 before CBK's 30th date

In Summary

•The public now has even lesser days to exchange their Sh1000 notes has businesses set early deadlines than that of Central bank of Kenya.

Kenya's new bank notes.
Kenya's new bank notes.
Image: ENOS TECHE

The public now has even lesser days to exchange their Sh1000 notes as businesses set early deadlines than that of Central bank of Kenya.

On Saturday, Kenya's leading teclo Safaricom Plc issued a statement alerting customers that M-Pesa shops will not accept old Sh1000 notes after Thursday this week, four days ahead of CBK's September 30 deadline.   

"Safaricom will not take old notes after September 26, to allow us bank in time," the company said in a communication to its regional outlets on Saturday.

 

Other businesses including Saving and credit firms have also issued similar notices. Last week, a Sacco with nationwide membership said it will not be accepting old notes starting Wednesday. 

“For administration purposes, our deadline for accepting those notes will be on September 25,” a message as seen by Star from a Sacco to its members stated.

In June 1, the CBK's Governor Patrick Njoroge announced to phase out the old notes (50, 100, 200, 500 and 1000) following the introduction of new currency to counter illicit financial flows.

Njoroge set the deadline for Sh1000 to October 1. This means the public has until September 30 to exchange as the notes will be worthless in eight days time.

All other denominations are unaffected and will continue to circulate alongside the new generation banknotes.

CBK is currently engaged in a massive sensitisation campaign aimed at reaching most people in the country.

The regulator is urging members of the public to use the window period to replace old Sh1000 notes, insisting that no additional time will be granted.

Njoroge has called for a check on unbanked citizens including the aged people. He has also appealed to employers who pay their workers in cash to ensure new notes are used.

By end of August, 100 million pieces of the old Sh1,000 note in circulation had been exchanged, out of Sh217 billion in circulation.

This translated to about 50 per cent of the notes had been returned in three months after the announcement and one month to the deadline.